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?

??

???

?

?

? ??

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"Ethics has to do

with what my

feelings tell me isright or wrong."

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"Ethics has todo with my

religiousbeliefs."

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"Being ethicalis doing what

the lawrequires."

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"Ethics consistsof the standards

of behavior oursociety accepts."

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FIRSTLY Well foundedstandards

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Study and

developmentof one's ethical

standards.

MORAL

CONDUCT

MORAL

BELEIVES

FEELINGS

SOCIAL

NORMS LAWS

ETHICAL

ETHICAL

ETHICAL

ETHICAL

ETHICAL

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Business ethics is the behavior that a businessadheres to in its daily dealings with the world.

The ethics of a particular business can be

diverse.

BUSSINESS ETHICS

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BUSINESS

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If a company does not adhere to businessethics and breaks the laws, they usually endup being fined.

PROFIT

FINE

BUSINESS

FINE

COMPANYS DONT BOTHER ABOUTFINES BECAUSE:

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Why should a company be concerned aboutbusiness ethics..????

people are usually willing to pay premium prices to feel goodabout the products they buy.

people often are willing to work harder with less compensation

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Ethics Issue 1:

Shareholder Wealth

SHARE

SHARE

SHARE

EMPLOYEES

CORPORATESTAKE-HOLDERS

SHARE

HOLDERS

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Ethics Issue 2:

Profit Maximization

PRIMARYPURPOSE OF BUSINESS

MAXIMIZATION OFPROFIT

HEALTHY

PROFIT

ENDLESSDRIVE

TO PROFIT

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PROFIT COST OF SUPPLY CHAIN

PROFIT QUALITY

PROFIT OPERATIONAL COST

PROFIT DECREASING EMPLOYEEBENEFIT

PROFIT TAX PAID

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Ethics Issue 3:Return on Investment (ROI)

Ethics Issue 4:Externalities

Ethics Issue 5:

Fiduciary Responsibility

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Internal and External Influences?

Product

Location

Management

Resources

Businessculture

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Internal and External Influences?

Economy

Government

Product diversity

Market conditions

geographic andsocial

MulticultralismCompititors

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A SLEPTanalysis is often carried out by business planners whichenables them to develop more informed strategies.

LEGAL

ECONOMIC

SOCIAL

POLITICAL

TECHNOLOGICAL

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Legal

Factors

Economic

FactorsPoliticalFactors

Technological

Factors

Social

Factors

SLEPT

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STAKEHOLDERS

Shareholders: Generate profits and pay dividends

Customers provide good quality products at reasonable prices.

Employees health and safety at work,fair pay

Suppliers pay on time, pay fair rates for the work done, provide

element of security

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Local Community provide employment, safe working environment,minimise pollution and negative externalities

Government abide by the law, abide by regulations, pay taxes

Environment limit pollution, disposal of waste safely

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ETHICAL AUDIT

An Ethical Audit:

Potential ethical problem.

To check the extent to which actions are consistent with theorganisations stated ethical intentions.

Suggests ways of improving the working environmeny.

Report on the ethical performance of the organization.

Provides assurance to the board.

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SOCIAL AUDIT

Social Audit is a systematicassessment of a firms objectives,strategies, and performance in

the domain of socialresponsibilities

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ENVIRONMENTALAUDIT

To identify the presence of hazards.

To estimate the cost of remediation

or clean up.

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The side effect on an individual or entity due to the

action of another individual or entity.

NUCLEAR POWERPLANT

Leads to

RADIOACTIVEWASTE

DEFINITION OF EXTERNALITY

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POSITIVE

EXTERNALITYBenefit the Society

Example: Environmental Clean-up & research

NEGATIVEEXTERNALITY

Harm the Society

Examplea) Hazards of Chemical Industry

b) Hazards of Pollution (such as destruction of ozone layer)

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Externality & Corporate World

Where does all wealth go????

Externalities are the financial liabilities that dont appearonthe financialstatement

Externalities allow corporations to damage environmental habitatsor cause human health problems.

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Add

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In business, its very easy to talk about ethics, but its very hardto be ethics.

Do No Harm